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Between 2013 and 2017, 6 companies recorded positive growth in their earnings on the consumer goods index. Amongst these companies is Dangote sugar refinery which recorded an average growth rate of 30 percent, making the firm the best performing company by earnings growth on the consumer goods index during the period of analysis. The consumer goods index comprises the most capitalized and liquid companies in food, beverage and tobacco on the Nigerian Stock Exchange. The index is designed to provide an investable benchmark to capture the performance of the consumer goods sectors. There are currently 15 stocks on the consumer goods index. Despite the economic headwinds that have stifled economic growth, caused the first recession in 25 years and hurt consumer spending, a few consumer goods companies still managed to deliver stellar performances. Topping the earnings growth chart between 2013 and 2017 were Dangote Sugar (30%), NASCON (15%), Unilever (10%), Nestle (9%), Honeywell Flour (9%), and Flour Mill (3%). Companies who saw their bottom-line grow the slowest during the period are include International Breweries, Guinness Nigeria plc, Cadbury Nigeria Plc, Northern Nigeria flour mills, Vitafoam Nigeria plc and Champion Breweries plc. Dangote sugar saw a spike in its profits in 2016 as profit grew from N11.14 billion in 2015 to N14.39 billion in 2016 representing a 29 percent growth in profit. Profit after tax almost tripled in 2017 y/y to stand at N39.7 billion up by 175 percent. Analysis shows that Dangote sugar was rewarded by investors outperforming its peers to be the best performing stock within the period. The firm’s stock price grew by about 115 percent between 2013 and 2017. Within these periods, growth in earnings lagged growth in share price. It could mean the market is sees Dangote stock being undervalued thereby repriced at a higher price than its earlier price. Surprisingly, International Breweries, despite being amongst the biggest under performers based on earnings growth between 2013 and 2017, came behind Dangote sugar to be one of the best stock performers in the consumer goods index. Despite revenue grew by 40 percent in 2017, PBT fell significantly by 21 percent in the same year. This led to a decline in profit after tax (PAT) from N2.6 billion in 2016 to N1.03 billion in 2017. Analysis reveals that operating expenses as well as cost incurred by the firm jumped ominously within the period. BUSINESSDAY PG. 14, JULY 20, 2018.

Capital market analysts have said that investors in Dangote Sugar Refinery Plc will continue to enjoy benefits of their investments in the company as the fundamental of the company remains strong. Analysts at United Capital said that Dangote Sugar is a good stock for investors, recommending a buy rating and Target Price (TP) of N21.70. They explained that their ‘‘investment case is premised on Dangote Sugar’s strong positioning in the thriving consumer goods space and execution of strategy to consolidate market position and sustain margins.” They forecast full year 2018 average revenue growth rate of 12.8 per cent and earnings per share of above nine per cent. ‘‘The key drivers to the growth will include, favorable macro environment and demography; Dangote Sugar’s low leverage relative to peer average; potential upside from currently low capacity utilization and huge margin prospects from ongoing backward integration programme. “The outlook for Dangote sugar is hinged on its ‘Sugar for Nigeria Project that was embarked on in 2012, with the goal of achieving the capacity of producing 1.5million tonnes of refined sugar from locally sourced sugar cane over the span of 10 years. “This was not just to enable the company become a fully integrated sugar business but to also eliminate high cost of imported raw material and enhance the capacity to serve local and export markets. In addition, as an offshoot of running an integrated sugar business, the company plans to source power in-house from bagasse and produce fuel ethanol, animal feeds from bagasse and bio-fertilizer from sugar mud-cakes,” the analysts explained. Dangote Sugar Refinery increased dividend paid to shareholders for the 2017 by 192 per cent to N21 billion or 175 kobo per share from N7.2 billion or 60 kobo per share in 2016, which is in line with its resolve to deliver decent returns on investments.
LEADERSHIP PAGE 31, JULY 17, 2018.

The Board of Directors of Dangote Sugar Refinery (DSR) Plc has confirmed Abdullahi Sule as the substantive group managing director/chief executive officer(GMD/CEO) of the company. The Company Secretary/Legal Adviser of DSR Mrs. Chioma Madubuko was quoted in a statement to have said that the confirmation was approved by the board at the company’s pre- 12th annual general meeting(AGM) board meeting held on the 21st of June, 2018 in Lagos. The confirmation is seen by market operators as a positive development that would further spur Sule to improve on the company’s performance. Sule has over 30 years’ experience in the oil & gas sector, steel production, machine shop operations and the sugar industry, both in Nigeria and the United States of America. He holds a BSc. in Mechanical Engineering and a Master’s degree in Industrial Technology from Indiana State University, United States. He was the Director for Business Development for Africa at Osyka Corporation, in Houston Texas, the MD/CEO of African Petroleum (AP) Plc, and Sadiq Petroleum Nigeria Limited. He was the Country Manager for Nigeria at Tetra Technologies Inc, Houston, Texas, before he joined DSR in 2007 as Managing Director, and later the Country Director of Fairport Process Equipment UK. Prior to his re-joining DSR as the MD/CEO in December 2011, a position he held until his appointment as the Deputy Group Managing Director of DSR in November 2013, and Ag. GMD in year 2015. Sule is the Chairman of the Nigeria Sugar Industry Monitoring Group (SIMOG), and a Fellow of the Nigerian Society of Engineers and the Nigerian Institution of Mechanical Engineers. THISDAY PAGE 43, June 29, 2018

The Chairman of Dangote Sugar Refinery, DSR Plc, Alhaji Aliko Dangote, has said that the company spent N121billion in 2017 in pursuit of its backward integration programme. Meanwhile, DSR increased dividend paid to shareholders for the year ended December 31, 2017 by 192 percent to N21 billion or 175 kobo per share from N7.2 billion or 60 kobo per share in 2016 in line with its resolve to deliver decent returns on investments. Speaking at the company’s Annual General Meeting, AGM, in Lagos, Dangote said that the money was spent on equipment, land acquisition, compensation to land owners, consultancy and related services. He said that despite the major setbacks like flood, community relations issues and most recently clashes between host community and Fulani herdsmen that hampered progress, Savannah Sugar remained the only company producing sugar from own grown sugarcane in the country with over N30 billion spent to date. “Negotiations with the government and local communities in Kwara and Niger on land acquisition processes are ongoing, in line with the backward integration sites plan, while project activities will resume in Taraba State when the rain assuages,” he said. Also speaking, the Acting Managing Director/CEO of DSR Plc, Abdullahi Sule, said the company would continue to pursue its target of achieving 1.08 million metric tonnes of refined sugar annually in the next six years. VANGUARD PAGE 26, JUNE 25, 2018

Dangote Sugar Refinery Plc has increased dividend pay out to shareholders for the 2017 financial year by 192 per cent to N21 billion, translating to 175 kobo per share from N7.2 billion or 60 kobo per share in 2016, in line with its resolve to deliver decent returns on investments. Speaking at the company’s yearly general meeting in Lagos at the weekend, the Chairman of Dangote Sugar Refinery Plc, Alhaji Aliko Dangote, said the company achieved a group turnover of N204.42 billion, showing 20.4 per cent increase over the comparative period of 2016. “With Profit Before Tax of N53.6 billion, showing 173 per cent increase over the 2016 and profit after tax of N39.7 billion, the board has recommended to shareholders for approval, at this meeting, the payment of a final dividend of N15 billion, being 125 kobo for the year ended December 31,2017.“The board had earlier approved the payment of an interim dividend of N6 billion, being 50 kobo per share. This brings the total dividends for the year under review to N21 billion,” he said. Speaking on the company’s backward integration project, Dangote said the firm has spent N121 billion on equipment, land acquisition, compensation to land owners, consultancy and related services. According to him, despite the major setbacks like flood, community relations issues and most recently, clashes between host communities and Fulani herdsmen that hampered progress, Savannah Sugar remained the only company producing sugar from own grown sugarcane in the country with over N30 billion spent to date. “Negotiations with the government and local communities in Kwara and Niger states on land acquisition processes are ongoing, in line with the backward integration sites,” he said. THE GUARDIAN PAGE 26, JUNE 25, 2018